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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared UPDATE 1-Volcanic ash relentless as tremors rock Iceland 18 Apr 2010 Iceland volcano sends new tremors, lower ash cloud 8:59am EDT TAKE-A-LOOK-Goldman Sachs faces fraud charges 10:16am EDT Airlines press to reopen European airspace 11:44am EDT U.S. considers options to curb Iran's nuclear program 18 Apr 2010 Day care sends sick kids home unnecessarily: study 1:12am EDT Airlines press to reopen European airspace 11:44am EDT Majority of Americans distrust the government 9:51am EDT UPDATE 1-Volcanic ash relentless as tremors rock Iceland 18 Apr 2010 Factbox: European airports and airspace closed by ash cloud 11:32am EDT Lenovo looks to mobile Internet for growth Michael Wei and Kelvin Soh BEIJING/HONG KONG Mon Apr 19, 2010 11:18am EDT Related News Asia telcos bet on banking to drive mobile money boom Fri, Apr 16 2010 Asia telcos bet on banking to drive mobile money boom Fri, Apr 16 2010 Toshiba U.S. PC sales surge, slates coming Wed, Apr 14 2010 UPDATE 2-Toshiba U.S. PC sales surge in Q1, slates coming Wed, Apr 14 2010 CORRECTED-Alcatel Lucent launches new mobile ad platform Wed, Apr 14 2010 Worker setup the Lenovo booth at a computer and technology exhibition in Jakarta March 3, 2010. Credit: Reuters/Beawiharta BEIJING/HONG KONG (Reuters) - Lenovo Group, the world's No.4 PC brand, said mobile Internet products will account for 10-20 percent of revenue in five years, as it embarks on a new drive into wireless computing. Technology | Media The company hoped to sell millions of its new line of smartphones in one to five years, and tens of millions in the future, said President and Chief Operating Officer Rory Read at a media briefing on Monday. He added that mobile Internet devices, which include popular low-cost netbooks, currently accounted for only a low single-digit percentage among of Lenovo's annual sales. "The market in the smartphone space is just emerging in China," Read said. "It's just the beginning." The mobile Internet devices market would overtake traditional PCs in the next five years, Chief Executive Yang Yuanqing, said as the company launched new mobile Internet products at an event in Beijing. After selling off its cell phone unit to focus on its core PC business, Lenovo bought back the unit last year as part of its aim to become the Chinese market leader in mobile communications, as the sector starts to converge with PCs. However, the company does not expect mobile communications to make a meaningful contribution to its bottom line for the next two years at least, as it competes with more established players. Lenovo, like rivals Acer and Dell, joined a growing list of traditional handset makers when it introduced a thin, touchscreen smartphone in January that runs on Google's Android operating system. Most market research firms such as IDC and Gartner expect growth in smartphones to outpace PCs in 2010, leading to a flurry of new entrants into the sector once dominated by cellphone makers such as Nokia and Blackberry maker Research in Motion. The smartphone sector also offers fatter profit margins than the PC sector, with net margins often in the low single digits for the heavily commoditised laptop and in the teens for smartphones. CORPORATE REFRESH THIS YEAR Lenovo, heavily reliant on corporate demand as a result of its purchase of IBM's laptop PC arm, expects a corporate refresh cycle this year as companies that put off buying new PCs during the financial crisis consider doing so now. "I'm optimistic that the economic environment will continue to improve," said Read. "I also see that the key business accounts - corporate and large enterprise, which are an important part of our business, are also improving and their activities are getting better." Lenovo and Dell were both hard hit during the global financial crisis compared with rivals such as Acer, which offers more consumer products, and HP, which has a more diversified product offering. Global personal computer shipments rose sharply in the first quarter, research firms IDC and Gartner said on April 14, helped by business spending on technology equipment. The global PC market is expected to grow by more than 9 percent to about 310 million units in 2010, IDC said, partially due to a corporate refresh cycle brought about by Microsoft's launch of its Windows 7 software in 2009. Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters Publishing venture bets on iPhone short stories LONDON (Reuters) - A new publishing company is betting that readers will bypass electronic readers such as Amazon's Kindle and Sony's Reader in favor of reading bite-sized stories on mobile devices they already own. Lenovo looks to mobile Internet for growth Facebook investor DST takes stake in Groupon RIM says video is big challenge to networks Countries to release anti-piracy text as deal nears FCC awaits economic data from Comcast, NBCU » More Top News How bad can it get for Goldman? Goldman Sachs faces fraud charges for the first time in its history, setting the stage for the Wall Street powerhouse's biggest-ever showdown with the government. Full Article The new tougher, harsher SEC Felix Salmon: Time for contrition Goldman says charges are unfounded Corporate Crime Reuters Breakingviews: Goldman clients: Victims or fools The SEC's fraud charges against Goldman hinge on whether the investors who lost $1 billion by buying a fearfully complex product were fools or victims. Commentary Goldman fraud case hits stocks Goldman clients stay loyal for now Goldman Sachs © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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